Key stages in the BASF conglomerate development
The German chemical company BASF is the largest in Europe and the world. It is an integrated system operating in several different areas, including materials production, chemicals, pesticides, and seed breeding for the agricultural industry.
BASF is an abbreviation of ‘Badische Anilin- und Soda-Fabrik’. The company was founded in 1865 by Friedrich Engelhorn. Initially, its activities focused on supplying textile factories. The chemical dyes produced by the company proved to be more practical and cheaper to use than traditional natural dyes. This contributed to the company’s prosperity. By 1900, BASF was one of the market leaders in Germany.
The first development steps
World War I greatly expanded the company’s opportunities. In fact, BASF fulfilled government orders for military needs. The potential of the chemical industry grew even more after the war when the country had to be rebuilt. BASF actively researched the use of nitrogen. This niche proved to be in demand in agriculture and provided a good basis for developing other areas:
– nitrogen fertiliser production;
– paint and varnish manufacturing;
– synthetic rubber production;
– new fuels.
The boom in the automotive industry was a turning point for the company. The chemical industry recognised the prospects for its technology in this sector. As a result, six major local companies joined forces to attract major investment. BASF, along with Bayer and Hoechst, became part of a new consortium called I.G. Farben.
BASF had useful connections with the government and enjoyed the favour of Adolf Hitler. At the same time, it worked actively with American customers. As a result, the company flourished and received huge investments. However, World War II caused heavy losses to the conglomerate. In 1952, the business was split into 12 parts, and BASF became an independent company.
Recovery period
A plastic usage boom in the 1960s helped BASF recover quickly. The company began producing new materials such as styrene, polystyrene, and nylon. Another milestone was the acquisition of Wintershall’s oil and gas business, which gave BASF access to large quantities of carbon dioxide and gas.
In the 1970s, the company changed its strategy to focus on the production of magnetic tapes and videotapes. At the same time, BASF began actively entering the US market by acquiring local companies. This approach significantly strengthened the company’s presence not only in North America but also in Asia and Europe.
The conglomerate did not stop growing. With the advent of the online era, the company entered the e-commerce sector. In addition, a number of new businesses emerged, making BASF the largest chemical conglomerate in the world.
